BankingTech FinTech

[Discussion] Funding mechanisms for marijuana enterprises?

December 31, 2020 at 07:35PM

Here's an interesting case study I've been toying with: if I were intent on opening a cannabis business in a state with medical or recreational cannabis, and I was dealing with a bank which (a) does not offer commercial accounts for marijuana-related businesses/MRBs, and (b) does not offer commercial lending for MRBs, would the bank knowingly allow taking out a home loan or HELOC if I disclosed my intent to use it to fund an MRB?

Follow-up: were a home loan or HELOC to be obtained with this same bank *without* disclosing it was intended to fund one or more MRBs, and it later came to light that the money was being used for such purpose, would this be considered a kind of bank fraud? I know the loan/LOC would probably be called in almost immediately regardless, but I'm curious whether the deception lays groundwork for a fraud case.

submitted by /u/regula_et_vita
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